may contract with a bank or third-party provider to collect its checks and
process the payments electronically using scannable documents that are
mailed to the customers with their invoices. A wholesale lockbox processes
a smaller number of larger dollar payments. A government might use a
wholesale lockbox for property tax payments or other large payments. Some
governments may need both types of lockboxes.
By using a lockbox, the government keeps the checks out of its physical
office and reduces staff processing time. For example, a lockbox would eliminate
the need for employees to open envelopes with checks, copy checks,
make out deposit slips, and take those deposits to the bank on a daily basis.